Small business tax refunds surge in first quarter to AUD $5,000

Data from CommBank indicates that the majority of small business tax refunds are processed in the first quarter of the financial year, with average refunds of around AUD $5,000.

Tax refund trends revealed

The latest figures provided by CommBank, based on funds deposited by the Australian Tax Office into small business accounts, reveal that small business owners received an average tax return of approximately AUD $5,000 for the 2024 financial year. The number of refunds processed between July and September in 2024 was 75% higher than the average number processed in the prior three quarters.

According to the data, certain sectors benefited the most, with mining contractors, electricians, plumbers, manufacturers, small agribusinesses and wholesale traders expecting the highest returns. On a state-by-state basis, the Australian Capital Territory and Queensland had the highest average refunds at AUD $5,700. Victoria followed at AUD $5,300, then New South Wales at AUD $4,900, and Western Australia at AUD $4,800.

Within each state, there were notable differences by industry. In New South Wales and Tasmania, electricians and plumbing businesses received the highest average tax refunds, while mining contractors were top in Western Australia. In Victoria, the education and communication services sector led, and in Queensland, small agriculture businesses were at the forefront.

Business owner perspectives

Drew Campbell, Co-founder of Gold Coast-based travel company Reveling, which organises small-group and private luxury travel experiences, shared insights on balancing optimism and pressure during tax season. He highlighted both the opportunities and challenges that tax time can bring for small business operators.

"There's nothing more rewarding than seeing people connect deeply with nature and community," says Drew Campbell, co-founder of Reveling.

He described the duality of tax time, saying, "Honestly, it's a bit of both stress and excitement. It's a good checkpoint to assess how we're tracking and tidy up any loose ends, but it can also feel like a crunch period - especially if things aren't perfectly organised or if ATO payments are due. That can be heavy for small businesses."

Mr Campbell also offered practical advice for his peers, stressing the importance of consistent financial management. "We lean heavily on good systems, regular bookkeeping, and trusted advisors - and try not to leave things to the last minute. Having clarity on the financials all year round makes tax time a lot less daunting," Mr Campbell said.

Risks and responsibilities

Rebecca Warren, Executive General Manager, Small Business Banking at Commonwealth Bank, addressed the pressures faced by small business owners during this period with a particular focus on financial stress and precautionary measures related to scams.

"We know tax time can be both a relief and a stress point for small business owners," said Rebecca Warren, Executive General Manager, Small Business Banking at Commonwealth Bank.

Ms Warren elaborated, "While many are looking forward to a refund, it's also a time when cash flow pressures, ATO debt and scam risks can weigh heavily, not to mention the everyday stresses of running a business while navigating economic uncertainty."

Heightened vigilance against scams

CommBank has reiterated warnings to business customers to remain vigilant against scams, particularly phishing emails or messages. The bank confirmed it will never request sensitive banking information such as a Client ID, password, or NetCode by email or SMS, nor will it include links for direct log-on from such messages. Customers are advised to always access their accounts via a trusted browser route or the official CommBank app.

The bank's security reminders coincide with the increased financial activity typical of tax season, when some businesses may be more vulnerable to targeting by scammers due to the higher volume of transactions and engagements with official communications. Businesses are encouraged to report any suspicious correspondence using CommBank's established channels and to ensure robust internal protocols for cybersecurity and fraud prevention.

The recently released data adds to the understanding of small business financial management around tax time and underscores the importance of year-round financial organisation, awareness of sector and regional benchmarks, and continued caution regarding security threats.